Market
LTIMindtree, HDFC Bank, NTPC, Titan Company, and Asian Paints were Nifty losers, while Sun Pharma, Cipla, Tech Mahindra, Tata Motors, and Axis Bank gained
Despite a mid-session pullback, banks and IT companies sold down for the third consecutive day on January 18 amid negative global indications.
At closure, the Sensex was down 313.90 points or 0.44 percent at 71,186.86 while the Nifty was down 109.70 points or 0.51 percent at 21,462.30.
Like worldwide rivals, the market opened lower and sustained the early sell-off. It pulled back significantly around midday but failed to build on it and was pressured again. Though it closed off the day’s low.
LTIMindtree, HDFC Bank, NTPC, Titan Company, and Asian Paints were Nifty losers, while Sun Pharma, Cipla, Tech Mahindra, Tata Motors, and Axis Bank gained.
Banks, FMCG, IT, metal, and power down 0.3-1 percent. Auto, capital goods, healthcare, oil & gas, and realty rose 0.3-0.7%.
BSE midcap and smallcap closed flat.
Friday Outlook
Nifty activity was turbulent after opening the gap. The Nifty had violent fluctuations and closed down ~110 points. Upside, the counter-trend downturn could reach 21600–21650, where the 20-day moving average resists. Levels are 21550–21570 for imminent resistance and 21350–21300 for important support.
The 161.82% Fibonacci extension level 45768 and the 20-week moving average make the zone of 45800–45600 a significant support zone for Bank Nifty. If it is not breached, the recovery will continue. The upside pullback could reach 46400–46600.
Volatility stretched market losses to 5%. After the gap-down beginning, Nifty tried to recover, but HDFC Bank and other heavyweights fell further. Energy, banking, and metal led sectors losses, while pharma and realty gained. After a wild movement, the wider indices ended unchanged.
Nifty failed to defend the 20 EMA and moved closer to 21,200, the next important support level. After the recent dip, consolidation is likely, and a comeback to 21,700-21,850 would draw new shorts. Thus, we recommend reducing positions on the rise and waiting for trend stability.
| FII Sold | 10,578.13Â Â Cr |
| DII Bought | 4,006.44Â Cr |
as per last trading session
Indian Market Stocks
| Sensex | -313.90 | -0.44% | 71,186.86 |
| Nifty 50 | -109.70 | –0.51% | 21,462.25 |
| Bank Nifty | -350.90 | -0.76% | 45,713.55 |
Market Movers
| Sun Pharma | 36.75 2.83% | LTIMindtree | -672.60 -10.72% |
| Cipla | 28.95 2.24% | HDFC Bank | -51.35 -3.34% |
| Tech Mahindra | 28.40 2.14% | NTPC | -10.00 -3.23% |
| Tata Motors | 13.50 1.68% | Titan Company | -95.35 -2.49% |
| Axis Bank | 15.20 1.40% | Asian Paints | -78.45 -2.42% |
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For Nifty, the immediate resistance is around 22,050 and support at 21,500 and 21,400, Nada added.
For Bank Nifty 48,000 is a key obstacle, underlined by strong Call writing. A decisive breakout above the may unleash a rapid short-covering surge. Immediate support is at 47,200-47000, a break of which will probably prompt severe selling pressure, perhaps leading to a fall, he added.